Liqun Department Store IPO Broke Through Doubts.

< p > according to the prospectus, the issue of new shares does not exceed 176 million shares, and the proposed 1 billion 905 million yuan will be used for 4 projects. Among them, the investment is about 881 million yuan for the development of chain store development projects, with an investment of about 460 million yuan for decoration and upgrading projects of the stores, investment of 439 million yuan for the construction of the city logistics distribution center four projects, and the upgrading of e-commerce platform projects to invest 125 million yuan.

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In the past three years, the sales revenue of Liqun department store has been on the rise. From 2011 to 2013, Liqun department store revenue was about 9 billion 90 million yuan, 9 billion 660 million yuan and 10 billion 670 million yuan respectively, but the reporter found that the net profit attributable to the parent company owners almost stagnated at the same time, which was about 290 million yuan, 330 million yuan and 330 million yuan respectively. Compared with the net profit rate, the net interest rate level of the group fell more slowly, with 3.36%, 3.45% and 3.12% in the reporting period respectively. P

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< p > more importantly, Liqun department store's revenue is highly dependent on the Qingdao market. During the reporting period, the proportion of main business income in Qingdao accounted for 77.54%, 79.17% and 80.06% of the company's main business revenue respectively.

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It is also hard to avoid the fact that 3 years, 40 administrative penalties and 7 lawsuits in Liqun department store, as well as a large number of bad assets acquired in bulk in the past few years, were criticized. Liqun department store listing process or adding variables in P.

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< p > Du Yanhong, a researcher in the retail industry of CIC, said that the sales of Liqun department store were too concentrated. If the national department stores were to exert their strength in the Qingdao market, Liqun department store would face great risks, and the support provided by other markets would be very limited. Facing the challenge of raising huge sums of money, the challenges lie in the poor economic environment and the weak purchasing power of residents.

In July 2nd, Wu Lei, a representative of Liqun department store, said that the traditional retail enterprises will still be in a dominant position for a long time, and the specific business categories will be adjusted in time according to the market changes. The company will give priority to how to make better use of the fund-raising funds to improve the market distribution and improve the market share.

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At the same time, Wu Lei said that the company insists on parity and low price in its operation. Because the new shopping mall needs to be nurturing, and the new depreciation and start-up expenses are relatively large, the net interest rate is relatively low, which is only a phased problem. P

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< p > < strong > inventory high < /strong > < /p >.

< p > according to Liqun Department prospectus, the company intends to list on the Shanghai Stock Exchange, issuing 176 million shares of new shares, and the total share capital after issuance is not more than 860 million shares, and the sponsor is CITIC Securities.

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< p > the proposed fund-raising fund is about 1 billion 905 million yuan for the construction of four major projects, including chain store development projects (880 million 805 thousand and 400 yuan), store decoration and upgrading projects (459 million 837 thousand and 800 yuan), urban logistics distribution center phase four project (439 million 606 thousand yuan), e-commerce platform upgrading project (124 million 693 thousand and 500 yuan).

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< p > < a href= "http:// www.91se91.com/news/index_c.asp" > Liqun department store < /a > indicates that after raising funds, the company will make reasonable arrangements according to the implementation schedule of investment projects.

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< p > it is understood that Liqun department store has a history of 80 years. Currently, it is mainly engaged in department store chain, commercial logistics and distribution, brand agency and operation, e-commerce and so on. It is a large commercial group in the local market.

As of the end of the reporting period, the company has 42 stores in Shandong, including 28 stores in Qingdao, with an area of 1 million 44 thousand and 100 square meters.

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< p > prospectus shows that from 2011 to 2013, the profit of Liqun department store was about 9 billion 90 million yuan, 9 billion 660 million yuan and 10 billion 670 million yuan respectively. The net profit attributable to the parent company was about 290 million yuan, 330 million yuan and 330 million yuan in the same period, almost stagnant.

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< p > an industry research report shows that as of 2013, the revenue growth and net interest rates of department stores decreased to 7.52% and 3.82% respectively, and the growth rate and net interest rate of the supermarket industry were reduced to 9.75% and 1.34% respectively.

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< p > with the combined effect of economic downturn and market downturn, the operation of Liqun department store has been greatly affected. From 2011 to 2013, the assets and liabilities ratio of the parent company was 53.95%, 56.85% and 51.80% respectively. Besides, the net interest rate level of the company was not optimistic, and it was 3.36%, 3.45% and 3.12% from 2011 to 2013.

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< p > prospectus shows that during the reporting period, the company's stock is not only large in quantity, but also involves a large amount of money. From 2011 to 2013, the net inventory of the company was 1 billion 998 million yuan, 1 billion 958 million yuan and 1 billion 746 million yuan respectively, accounting for 57.95%, 63.46% and 61.64% of the current assets, respectively, accounting for 39.53%, 33.87% and 27.21% of total assets.

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< p > reporter noted that in the inventory of goods, department stores accounted for the highest proportion, at the end of 2013, accounted for 46.17% of the total inventory.

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< p > in view of this, Liqun department store's performance is not optimistic. Its acquisition of large amount of non-performing assets in large quantities a few years ago has not shown its management level and quality in the prospectus. Although the merger and acquisition is considered by the industry to be out of the ordinary sense, it also has a glimpse of its operating assets level and experience from another perspective.

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< p > < strong > > a href= "http://? www.91se91.com/news/index_c.asp" > regional competition < /a > intense < /strong > /p >

< p > in the future, the development focus of Liqun department store will sink to the central and southwest parts of Shandong, and gradually extend to Jiangsu area.

This is based on Shandong's geographical advantages and its own market share and other strategic positioning.

Geographically, expansion is no more than Hebei and Jiangsu.

In fact, there are Jinying, Wanda and Dayang department stores in the Jiangsu area. Besides, Ginza shares have already occupied Hebei's dominant position, which is very unfavorable for Liqun department store.

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< p > nevertheless, the store in Nanjing, Jiangsu, is likely to open in 2015.

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< p > reporter noted that during the reporting period, Liqun department store invested in the construction of Jimo Plaza, Laixi shopping center, Licang logistics center, and the purchase of Qianhai Shopping Plaza property and new land use right of the parent company's new commercial project, with an expenditure amounting to 1 billion 780 million yuan.

For the frequent market moves, Du Yanhong, a consultant in retail industry in CIC, believes that because of the long-term revenue contribution from the Qingdao market, the expansion to the periphery is mainly aimed at solving the risk of too concentrated sales revenue.

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< p > from the perspective of market share, Liqun department store, which has been rooted in Qingdao for a long time, has not become a thriving market in the Qingdao market. The share of various formats such as Ginza shares, Zhenhua general merchandise and WAL-MART has not only lacked the absolute position of the market, but also lacked the core advantages.

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< p > public data show that in 2012, Shandong's Ginza revenue reached 32 billion yuan, while Yantai Zhenhua Department Store's revenue amounted to 19 billion yuan, Liqun group's sales volume reached 21 billion 300 million yuan, and Liqun department store reached 12 billion yuan.

Regardless of scale of revenue or profitability, Liqun department stores are lower than those of Ginza rivals.

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< p > 2012, the total sales volume of Shandong's retail chain enterprises amounted to 245 billion 900 million yuan, with an area of 12 million 100 thousand square meters.

Liqun department store accounted for about 3.9% of the total sales revenue at the same time, accounting for about 5.2% of the operating area.

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< p >, however, we should not be able to peep at the reporting period. From 2011 to 2013, the assets and liabilities ratio of the parent company was 53.95%, 56.85% and 51.80% respectively.

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< p > prospectus disclosure, at the end of 2013, Liqun department store liabilities totaled 4 billion 414 million 224 thousand and 500 yuan, of which short-term loans were 1 billion 741 million yuan (39.44%), long-term loans were 70 million yuan, accounts payable 924 million 333 thousand and 600 yuan (accounting for 20.94%).

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What is even more surprising is that in 2007 and 2011, a lot of bad assets acquired by Liqun department store were purchased at a high price, and some of P's performance losses continued.

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Reporter P found that Liqun department store bought Dongying Ruitai shopping plaza in 2011, lost 9 million 860 thousand yuan in 2012, lost 14 million 740 thousand yuan in 2013, 2 million 70 thousand yuan in 2012 in Zhucheng, 5 million 730 thousand yuan in 2013, 5 million 730 thousand yuan in 2013, 6 million 900 thousand yuan in 2012, and 3 million 770 thousand yuan in Jiaozhou; Qianhai shopping plaza, the loss was 1 million 910 thousand yuan, and the loss was 4 million 90 thousand yuan; the acquisition of Qingdao e-commerce company, with a loss of 786 thousand yuan, a loss of 1 million 850 thousand yuan, a purchase of Rili dress, a loss of 4 million 610 thousand yuan, a loss of 1 million 850 thousand yuan.

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< p > July 2nd, Liqun department store responded to reporters that acquired company is now running steadily in the main body to be listed.

As the department stores opened up from three to five years from loss to profit, most of the companies that were acquired were in the breeding stage. Some of the buyout companies had reached the stage of return sales after the initial incubation period, and they had a backwardness in future earnings, asset appreciation and company market layout.

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< p > < strong > > a href= "http:// www.91se91.com/news/index_c.asp" > electricity supplier < /a > prospect is worrying. < /strong > /p >

< p > Liqun department store intends to achieve the leap development by listing and financing. From the scale and direction of the fund-raising funds, the intention is obviously to seek development space online and offline.

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< p > reporter noted that in the 1 billion 905 million yuan to be raised, 125 million yuan will be allocated to the upgrading of e-commerce projects.

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"P >" Wu Lei said that e-commerce is one of the business operations of Liqun department stores. It is based on the beneficial supplement to the business operation under the profit line. The Future Ltd will develop e-commerce business in combination with the entity store and further promote the consumption pattern of "offline experience + online shopping" and provide convenience for the consumer.

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< p > prospectus disclosed that the construction period of the above projects is 3 years, and the operation period is 10 years. The annual sales revenue is 1 billion 576 million 915 thousand and 100 yuan, the annual net profit is 76 million 36 thousand and 900 yuan, the investment return period is 7.06 years, and the internal rate of return of investment is 26.71%.

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< p > however, the electricity supplier is not relaxed and calm for Liqun department store. Not long ago, Liqun department store told the media that its Liqun mall lost one hundred million yuan in 2013, and so far, it is still in a state of loss.

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< p > May 20th, Liqun mall launched the "single challenge" with Jingdong, which was questioned as a gimmick marketing.

Liqun mall is only a local electricity supplier. It can not match Jingdong's market size and traffic volume.

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< p > Liqun general store launched the Liqun online shopping mall in 2008. The performance after testing the water electricity supplier is not obvious. The media quoted the Alexa data as saying that the average daily IP of Liqun mall in the past month was 9000, the daily average PV was 63000, and the Ginza network of its rival Ginza shares had an average daily IP of 93000, and the average daily PV was 280 thousand.

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< p > although the electricity supplier concept is quite fashionable nowadays, it just looks beautiful. Liqun department store, which is familiar with traditional department stores, obviously does not pay enough attention and investment. The 125 million yuan used to upgrade e-commerce projects is a drop in the bucket. What's more, e-commerce needs professionals. Most of the employees in Liqun mall are from Liqun group.

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Less than P, in addition, the trouble of Liqun department stores has also revealed many problems in the operation of the old department store.

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< p > Liqun Department has exposed its scandals in the prospectus. From 2007 to 2008, Liqun department store had been fined 1 million 557 thousand and 200 yuan for stealing tax avoidance behavior.

In addition, from January 1, 2011 to March 31, 2014, Liqun department store and its subsidiaries were penalized by 40 government departments, including industry and commerce, taxation, health and quality supervision.

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< p > prospectus shows that as of March 31, 2014, Liqun general merchandise also involved 7 major litigation cases involving more than 1 million of the litigation object. The plaintiff involved banks, construction companies, individuals, etc., and even after litigant general store refused to enforce the court's judgment.

Liqun department store had to make up a debt of 10 million 230 thousand yuan.

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