Is There A Reason For Raising Wolves?

< p > < strong > closing shop pain does not hurt? < /strong > < /p >

< p > > a href= "http://? www.91se91.com/news/index_c.asp" > seven wolves < /a > the first place Grand Canyon store is only one of the hundreds of stores that the seven wolves have closed in the past.

"In the past two years, the overall development of men's clothing industry is not optimistic, and it is still very difficult to get out of the predicament in 2014."

Many industry experts are still not optimistic about the development of China's men's clothing industry this year.

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< p > in fact, from 2012, the opening speed of the seven wolves has obviously declined. Some people analyzed that the net growth of 31 stores in that year was 0.78%, far lower than the growth rate of the previous three years (the growth rate of stores in 2009-2011 years was 17.33%, 8.49% and 12.79% respectively).

By 2013, the reason that it had cut 505 stores was interpreted as "closing some inefficient and invalid shops to ensure terminal profits". However, this is not a satisfactory answer to many people.

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< p > "all year round", we think the revenue growth of the company will still face greater pressure. But in the 4 quarter of 2013, the recovery channel inventory factor is expected to improve. The reasons are: 1) the channel inventory is still high: according to the estimated inventory level of the franchisees in 2013, we estimate that the current inventory level of the franchisee is still over 1 years; 2) the growth of the electricity supplier channel is slowing down: with the increase of the penetration of the electricity supplier, the traffic dividend is gradually disappearing, and the industry's online revenue growth has generally slowed down since the 4 quarter of 2013.

BOC International Securities is not optimistic about the performance of the seven wolves. "Our basic judgement for the company is still going to < a href=" http:// www.91se91.com/news/index_c.asp "> inventory < /a >, so the probability of significant improvement in the company's operating profit margin is not high.

The main risks facing the rating are: the retail terminal continues to slump. "

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< p > a "retail terminal continued downturn" anticipation, immediately gave seven wolves "to close some inefficient and invalid shops, to ensure terminal profits" hit hard, seven wolves are still stressed recently, some people analyzed, in the past three years rapid expansion at the same time, seven wolves in Jin Rong, real estate and other industries have involved, this makes seven wolves no intention to take care of the main business, become one of the reasons for the decline in performance.

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< p > < strong > collection < a href= "http:// www.91se91.com/news/index_c.asp" > capital < /a > behind < /strong > /p >

< p >, as one of the "culprits" that distract the seven wolves, the real estate, the seven wolves can be treated as "care plus".

In the main housing industry, the seven wolves are not the first ones in the clothing circle, but they are said to be "the heart of Sima Zhao".

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< p > the data reported in China net show that as early as June 15, 2012, the seven wolves group had pledged 128 million 850 thousand shares to the bank, accounting for 30.36% of the total share capital of the company. In June 22nd of the same year, its subordinate companies came to pledge 39368750 shares held by them to the Bank of Hong Kong, accounting for 9.28% of the total share capital of the company.

The above two sponsors total pledge of seven wolves share about 40%.

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< p > for this reason, there is an analysis of accounting personages of listed companies. "Generally speaking, such large groups do not need to pledge equity in bank loans unless there is no credit limit.

The above equity pledge indicates that two shareholders of the seven wolves are in short supply.

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< p > why is there a shortage of funds? The seven wolves are silent, but others have been unable to restrain themselves from scratching the inside.

According to the Securities Daily, seven wolves were approved to start raising funds in May 2012.

The announcement of the year showed that "seven wolves have issued 78 million 200 thousand shares of RMB common stock (A shares) by way of non-public offering of shares to specific investors, raising the total amount of funds to 1 billion 799 million yuan, and the net amount actually raised is 1 billion 766 million yuan."

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The wolf wolves announced to the outside world: "according to the company's strategic plan, we plan to open more than 1200 retail terminals (shops) in the next three years and appropriately increase the ratio of private stores, which requires more than 2 billion yuan investment". P

Putting the "thousand shop plan" on the agenda became the best way to raise funds, so the seven wolves applied for a $1 billion 800 million raise.

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< p > however, the seven wolves did not implement the original commitment plan after the company's collection project was approved, but issued a notice on "temporarily replenish the working capital with idle funds". "With the continuous expansion of the company's daily production and operation scale, the flow capital needed has increased, resulting in insufficient liquidity of the company.

There are still some idle funds raised in the company's capital raising account, which is temporarily not invested in the construction of the project.

In other words, seven wolves raised funds, but the direction of usage changed.

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< p > and in March 15, 2013, the seven wolves released the announcement on the use of temporarily idle funds raised for cash management, saying that the company passed the "motion on the use of temporarily idle funds raised for cash management", and agreed to make use of part of the temporarily idle funds raised 350 million yuan to carry out cash management investment guaranteed bank financial products.

But the opening shop is obviously not in the category of "investment guaranteed bank financial products". According to the Securities Daily, seven wolves raise funds through the opening of shops, while in the field is financing for real estate investment.

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< p > to explain to the seven wolves, "the macroeconomic situation is uncertain in 2012, and commercial property prices are high. In order to reduce the investment risk of raising funds, prudent use of fund-raising funds has been made. The company has slowed down the pace of project construction, and actually used less capital than the original plan."

According to the above announcement, the seven wolves had already discovered the weakness of the market in 2012, but the company still persisted in promoting the project. Some analysts said that from the case of the issuance of Listed Companies in China, there was not much money to raise funds for good projects, and money and expansion were often the most important purposes.

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After "P", seven wolves issued a notice in July 24, 2013, saying: "the seven wolves group pledge to the Bank of China Limited by Share Ltd Jinjiang branch of the 78 million 750 thousand shares and 12 million 250 thousand yuan cash dividend due to the expiration of the loan pledge.

In order to continue to obtain the credit line, the seven wolves group will again pledge the 78 million 750 thousand shares of the lifting of the pledge to the Bank of China, and the remaining 12 million 250 thousand yuan cash dividend will be lifted.

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