Red Dragonfly Shoe Industry Reverse Market Expansion Aroused Public Media Questioned

At present, not only the marketing network is in a state of contraction, and the output of major products is also shrinking. Meanwhile, net profit has also seen a negative growth in recent years. Even a lot of key financial indicators are also lower than the average level of the same industry, causing the market's concerns and doubts. Sensitive focus analysis:

　　 1, against the market expansion, the investment projects are worrying.

In the prospectus, red dragonfly introduced: as of June 30, 2014, December 31, 2013, December 31, 2012 and December 31, 2011, the franchisees of the issuers were 2551, 2765, 2743 and 2468 respectively. In 2010 ~2012, the franchisee developed more franchisees. In recent years, the degree of prosperity of the retail industry has declined, and the profit margins of franchisees have been squeezed to a certain extent, and the number of franchisees has declined.

In addition to the above introduction, the reporter found that with the decline in the number of franchisees, the number of direct Dragonfly stores was also significantly reduced, from 699 at the end of 2011 to 530 at the end of 6 in 2014, a total reduction of 169. The decline of franchisees and direct stores in recent years shows the contraction of the company's marketing network.

　　 2 gross margin is lower than the industry average net profit into the downstream channel.

　　 Footwear manufacturing industry Showing signs of weakness, gross margins have fallen sharply. But for the red dragonfly, its gross profit margin is much lower than that of the same industry listed companies.

According to the first financial daily, in 2013 1~6, the Red Dragonfly's gross profit rate was only 36.11%, while the industry average gross margin level was 53.01%. In 2011, the average gross profit margin of ~2012 was 53.73% and 52.59% respectively, while the main business gross margin of red dragonfly was 34.43% and 35.61% respectively. It is not hard to see that the profit margin of red dragonfly is much lower than that of peers by the margin of gross margin of nearly 20 percentage points.

In terms of net profit level, it is worth noting that in 2011~2013, red dragonfly revenue was 2 billion 718 million yuan, 3 billion 68 million yuan and 3 billion 222 million yuan respectively, with a growth rate of 52.58%, 13.64% and 4.85% respectively, and the growth rate slowed down significantly. Net profit, 2013. Red Dragonfly Net profit of 257 million yuan, compared to 293 million yuan in 2012, down 12.44%.

　 3 business efficiency is declining, and performance growth is weak.

Corresponding to the high inventory and the rapid increase in receivables, the operating efficiency of red dragonfly is declining.

From 2011 to 2013, inventory turnover rates were 4.61, 3.50 and 3.21 respectively, showing a declining trend. Inventory turnover refers to the ratio of main business cost to average inventory balance in a certain period of time. Inventory turnover is one of the important indicators of enterprise operation capability analysis. It measures the efficiency of inventory operation and its business performance in all aspects of enterprise production and operation.

The declining receivables turnover and inventory turnover directly contributed to the weakness of the Red Dragonfly performance. Referring to the prospectus, we can find that from 2011 to 2013, the main business revenue of red dragonfly was 2 billion 677 million yuan, 3 billion 43 million yuan and 3 billion 190 million yuan, respectively. The growth rate was 52.58%, 13.64% and 4.85% respectively, and the growth rate slowed down gradually. Net profit was 277 million yuan, 293 million yuan and 257 million yuan respectively, showing a very unstable situation.

　　 Four Technology research and development Drop in

According to the Red Dragonfly Footwear prospectus, in the company's staff composition, technical secondary school / high school and below 4562 people, accounting for up to 69.26%, undergraduate and above education staff accounted for 7.52%. The age distribution of employees also fully shows the characteristics of labor-intensive enterprises. The proportion of employees below 30 years old accounts for 58.26% of the total staff of the company. Among them, the proportion of young people under 25 is the largest, 36.91%. On the other hand, the proportion of young workers is too high. The desire of the company to expand its sales path and enhance its marketing capability is not difficult to understand. The Red Dragonfly shoe industry will invest 866 million 912 thousand and 500 yuan into the construction of marketing channels in this capital raising project, which will account for 88.94% of the funds raised, and the sales expansion will be obvious.

The company's financial data show that the company's Red Dragonfly research and development company even appeared profit loss in 2013, and the net profit in 2013 was -127.91 million yuan. With the expansion of the sales network, the R & D expenses will not rise or fall. In the long run, the competitiveness of the Red Dragonfly shoe industry in the labor-intensive industrial chain will be reduced.

It is worth mentioning that the Red Dragonfly shoe industry was recognized as a high-tech enterprise by Zhejiang Province in 2009. In the year of 2011, it enjoyed the preferential tax policy of high and new technology enterprises, and paid enterprise income tax at 15% tax rate. Since 2012, the company's income tax rate is 25% of the general corporate income tax rate. It has no longer enjoyed the preferential treatment of high and new technology enterprise income tax rates.