Seven Wolves Will Not Blindly Expand Their Stores.

< p > > a href= "http://www.91se91.com/news/index_f.asp" > seven wolves < /a > in May 2012, it adopted the way of issuing shares to specific investors, issuing 78 million 200 thousand shares of RMB common stock (A share), and actually raising net capital of 1 billion 766 million yuan, but these funds were not used to open shops, and diverted investment in real estate and financial products. In this regard, the seven wolves said that the main purpose of raising funds in 2012 was to prepare for the construction of the seven wolf new store, but it was not blindly expanding the storefront, but selectively opening the storefront that could generate benefits. < /p >
< p > < strong > attack industry "cold current" < /strong > /p >
< p > reporters also pointed out that up to December 31, 2013, the nearly 1 billion 800 million yuan raising project of the seven wolves had invested only 186 million yuan. The completion rate of the project is 9%, and the investment progress of the fund-raising fund is 10.53%. In addition, seven wolves raised nearly 1 billion 800 million yuan of funds until the end of 2013, there was still a balance of $1 billion 270 million. When a large number of fund-raising funds can not be used in bank accounts, seven wolves use some idle funds to invest in bank financial products, with an investment of up to 330 million yuan. < /p >
Wu Xingqun, deputy general manager of P, said in an interview with reporters that the main purpose of raising funds in 2012 was to prepare for the construction of the seven wolf store. However, it was not blindly expanding the storefront, but selectively opening the storefront that could generate benefits. The use of some idle funds by the seven wolves is also the purchase of low-risk bank financial products, which does not affect the established investment plan of the seven wolves. This shows that seven wolves continue to strengthen internal control and enhance gross profit. < /p >
< p > in March of this year, the king also announced that it would use the total amount of investment not more than 1 billion 500 million yuan to purchase low-risk financial products. As early as 2011, nine Mu Wang IPO raised 2 billion 550 million yuan. The fund is mainly used for marketing network construction, supply chain system optimization and upgrading, information system upgrading, design and research center construction and so on. The total investment is 1 billion 530 million yuan, and its reserve fund balance (including interest) is 1 billion 170 million yuan. In order to improve the efficiency of raising funds and ensure that the construction of funds and the use of fund-raising funds will not be affected, the king of nine Mu intends to use some idle funds to purchase short-term financial products with a term of not more than one year. < /p >
"P >" Chen, manager of CITIC investment and financial planning, "said that because of the" a target= "_blank" href= "http://www.91se91.com/" textile "/a" a target= "_blank" href= "_blank", the clothing industry is still in the doldrums, and the seven wolves are gradually integrating and closing the transformation and upgrading of stores. The main reason is that there are no good investment targets in their main businesses. Under such circumstances, a listed company like nine herd king and seven wolves can only purchase short-term and low-risk financial products to protect investors' interests. < /p >
Li Peng, senior investment advisor of P & Co, said that although the annual yield of short-term financial products is about 5%~7%, many listed companies in the textile and garment industry are still keen to buy financial products, mainly because the industry is still in the process of clearing inventory. At present, from the whole market cycle, the textile and apparel industry is still in a downturn, and buying large quantities of financial products from the companies in the industry can also show that they are not very optimistic about the industry's investment. < /p >
< p > it is reported that the sales situation of 50 large retail enterprises announced by China Business Information Center shows that garment retail sales in 2013 increased by 4.1% over the same period last year, and the growth rate dropped by 5.9 percentage points over the previous year. Among them, the sale of men's clothing was the most obvious, and the total retail sales decreased by 0.6% year-on-year. The overall price center of clothing decreased by 2% compared with 2012, which is in sharp contrast to the growth of about 10% in previous years. < /p >
< p > 2013, ten consecutive years of growth of seven wolves in the industry winter before "show" the other side. The annual report shows that in 2013, the total revenue of seven wolves was 2 billion 773 million yuan, down 20.23% from 2012, and the net profit attributable to shareholders of listed companies was 379 million yuan, down 32.44% from the previous year. The main business revenue was 2 billion 630 million yuan, down 20.58% compared to the same period last year. The data also showed that the sales volume of the five major products of the company all increased negatively. < /p >
< p > for this reason, the seven wolves explained in the annual report that in 2013, the macroeconomic and consumer confidence index was still at a low level, the terminal consumption was stagnant, the turnover rate of products decreased, and the inventory increased. At the same time, the rent of the core business circle is still on the rise, labor costs and other costs continue to increase, and terminal operating costs increase. Insiders pointed out that demand is declining, competition is intensifying and costs are rising. In the past year, seven wolves have continuously optimized channels and supply chains, and actively closed down a large number of poor performance stores. < /p >
< p > < strong > commercial development and self use is hard to define < /strong > < /p >
< p > reporter also pointed out in the report that the use of raising money by the seven wolves in the past years is not like buying the first floor shops on the street in the announcement, but that most of the raised funds are used to buy the whole property, and thus leads to the phenomenon that some houses are vacant. In addition, the seven wolves disclosed "about the issue of the issue of non-public issues in 2011" shows that there are 11 properties of the seven wolves for the entire purchase. In these properties, apart from part of the seven wolf store, most of them are rented out and some are vacant. < /p >
< p > "it can not be said that real estate has become the main business of seven wolves. This is a normal phenomenon of" capital intervention ". The above manager Chen did not approve of this statement. He said that after several years of rapid development, the textile and garment enterprises accumulated a lot of cash and the main business growth was weak. These enterprises had to find new a href= "http://www.91se91.com/news/index_s.asp" > Lun /a growth point, but they could not blindly identify their behavior as a "March" real estate behavior. < /p >
< p > it is reported that "capital" intervention generally has two forms: commercial development and self use demand. These two forms have penetrated each other, starting from building their own dormitories to commercial housing development, or building their own stores to transfer, but the boundaries between them have not been very clear to the present clarity. Many textile enterprises are more willing to use the selling terminal control and channel construction, such as franchised stores and hypermarkets, because of the scarcity and non renewable resources of commercial real estate. < /p >
Prior to the P, seven wolves wrote in a notice to raise funds: "in order to increase the use value of shops and the rate of return on investment, the company's main project is to purchase a good Street store located on the first floor." Chen said that in the expansion of the seven wolves, it is true that the value added of real estate can not be excluded from the franchised stores, but it is also a normal phenomenon in the clothing industry. < /p >
< p > industry pointed out that textile and garment investment real estate is out of consideration of sales terminal construction, but most of them are involved in the development of commercial real estate, such as housing, apartments, office buildings, etc. These are the actual sources of their profits. Chen also said that textile and garment enterprises could not buy large quantities of commercial real estate because of the rising trend. Because the real estate investment in this area still needs to serve the main business, the balance between cost control and investment must be considered, otherwise it will make an impact on the normal operation of enterprises. < /p >
< p > in the 2013 annual report, the seven wolves also indicated that there were no significant capital expenditures for the seven wolves except possible shops. The company's capital raising account has sufficient funds to support the future development strategy of the seven wolves. At the same time, the operating cash flow of the seven wolves is relatively stable, corporate credit is good, and bank credit lines are sufficient. If the funds are insufficient, it can also be solved through bank financing. Overall, the capital expenditure of the seven wolves is in line with the company's cash flow and strategic needs, and will not have a significant impact on the company's healthy cash flow. < /p >
< p > in the background of slow development of physical channels, Wu Xingqun also admitted that the seven wolves are now setting up five major business transformation retail businesses, and more attention should be paid to the upgrading of commodity structure and market < a href= "http://www.91se91.com/news/index_s.asp" > retail < /a > capability, to improve the efficiency of terminal stores, and also to rely on the transformation of e-commerce. For inventory, the seven wolves are also actively handling inventory problems through e-commerce, retail, promotion and other channels, keeping inventories at the level. Seven wolf annual report shows that in 2013, the business revenue of the seven wolves business reached about 290 million yuan, an increase of more than 60% over the same period last year, accounting for over 10% of the company's performance. < /p >